Selected account balances of Connell Company for 2015 along with additional information as of December 31 are as follows:

Number of Connell shares of stock outstanding: 60,000
Instructions:
Prepare a multiple-step income statement and statement of retained earnings for the year ended December 31, 2015.

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35,000 150,000 190,000 145,000 8,000 427,425 10,000 775,000 Bad Debt Expense Delivery Expense 32,000 Dividend Revenue 425,000 Dividends Employee Pension Expense Freight-In Gain on Sale of Office Equipment Income Taxes, 2015 Interest Revenue Inventory, January 1, 2015 Loss on Sale of Investment Depreciation Expense- Delivery Trucks 29,000 Depreciation Expense- Office Building 25,000 Depreciation Expense- Office Equipment Depreciation Expense- 10,000 Store Equipment 25,000 Securities 20,000 Loss on Write-Down of Obsolete Inventory $ 75,000 Miscellaneous General Expenses Miscellaneous Selling Expenses Officers' and Office Salaries Property Taxes Expense Purchase Discounts (a) Inventory was valued at year-end as follows: Cost. Write-down of obsolete inventory Purchases Retained Earnings, January 1, 2015 Sales $4,633,200 550,000 8,125,000 55,000 95,000 521,000 45,000 50,000 550,000 Sales Discounts 100,000 47,700 Sales Returns and Allowances Sales Salaries $825,000 75,000 $750,000